Kevin Gagnon sued Asset Marketing Systems (AMS), a former customer, alleging copyright infringement and misappropriation of trade secrets regarding computer programs written for AMS. After AMS terminated its contract with Gagnon, the company hired seven of Gagnon’s twelve employees to provide the same services that were previously provided through Gagnon. The Ninth Circuit held that the non-compete covenants contained in Gagnon’s employment contracts with his former employees were unenforceable under Cal. Bus. & Prof. Code § 16600.
Asset Mktg. Systems, Inc. v. Gagnon, 542 F.3d 748 (9th Cir. 2008)

Back to main